Platinum Australia (PLA)

Goldman Sachs JBWere has downgraded
Platinum Australia
to “hold" from “buy" after a disappointing production report, which missed estimates.

“The key reason for this is that on our estimates. Platinum Australia will consume available cash by the end of December quarter and with the debt facility fully drawn Platinum Australia will need to either negotiate an increase to this facility or Platinum Australia will need to undertake a further equity raising," analyst Ian Preston says.

Goldman Sachs JBWere has also downgraded its 12-month target price to $1.25 from $1.50.

Underground production at the company’s mine was impacted by a large pothole, which affected available stopping area.

Mr Preston says this highlights the lack of mining flexibility the company had at this stage.

Meanwhile, production at the miner’s Smokey Hills tenancy was impacted by lightning strike which damaged the main control panel.

The impact was likely to affect production for around five days.

Platinum Australia shares were down 7.5¢, or 7.4 per cent, at 2.37pm on Monday.